Least Cost Cell First Method

Posted in Operations and Supply Chain Terms, Total Reads: 5489

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Definition: Least Cost Cell First Method

This is one of the five methods for obtaining initial basic feasible solution for transportation problems in operations, where more than one supply centers and demand centers are there and the aim is to achieve least cost of transportation.

Example: Let there are three supply points (S1, S2, and S3) and three demand points (D1, D2, D3) with their supply and demand units given. Each cell has mentioned in it the cost involved in transporting goods from supply to demand point.